(PBR) Petroleo Brasileiro S.A. Digs Up a New Oil Well

Drilling success continued for state-controlled energy firm Petroleo Brasileiro S.A. or Petrobras (PBR), as the company came across high quality oil in the pre-salt deposit of Santos Basin, offshore Brazil.

The company struck the accumulation while drilling the well — 3-BRSA-1053-RJS (3-RJS-699) – unofficially known as Franco SW. The well – drilled at a water depth of 6,640.4 feet – is located about 130.5 miles off the coast of Rio de Janeiro and 10.6 miles to the south of the discovery well 2-ANP-1-RJS (Franco).

Petrobras performed cable tests to collect samples from the carbonate rock reservoirs and confirmed the existence of 28 degree API oil in the region. The company intends to carry on additional exploration in the southern Franco area.

With the completion of this stage, Petrobras will move ahead with investments and other activities that include the acquisition of 3D seismic data of the area, as per the Minimum Exploratory Program (PEO) of the Transfer of Rights Agreement.

This is the fourth well explored in the Transfer of Rights area that covers an acreage known as Sul de Guara. Petrobras is permitted to generate up to 319 million barrels of oil equivalent from the region.

Earlier, in 2010, Petrobras entered into the Transfer of Rights Agreement with the Brazilian National Oil, Natural Gas and Biofuels Agency and obtained the authority to explore the region. Under this assignment, Petrobras drilled the first well, 3-BRSA-944-RJS (3-RJS-688A), in the Franco area, while the second was explored in the pre-salt region named Tupi Northeast, located in the northeast of the Lula Field. In June, Petrobras discovered the third well in the southern portion of Sapinhoa Field.

Headquartered in Rio de Janeiro, Petrobras is a Brazilian energy behemoth, dominating the country’s energy sector. The company operates in six segments: Exploration and Production, Refining, Transportation and Marketing, Distribution, Gas and Power, Biofuels and International.

Petrobras – the fourth biggest company by market capitalization after ExxonMobil Corp. (XOM), Royal Dutch Shell plc (rdsa) and Chevron Corporation (CVX) – currently retains a Zacks #3 Rank that translates into a short-term Hold rating.

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